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Cost of Attendance
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Financial Aid Overview
By Kelsey Stewart Financial Aid Advisor
Central Michigan University
Agenda• Cost of Attendance• Types of Aid• FAFSA– IRS Data retrieval
• Dependent or Independent • Who is my parent?• Household size • Award Letters• Questions
Cost of Attendance
Four Types of Aid
• Scholarships• Grants• Work study/employment • Loans
Scholarships
• Academic Scholarships• Athletic Scholarships• Other awards based on certain criteria• Many are specific to an individual college• Scholarship are not need based
Grants *Grants are Need Based aid that does not need to be repaid*You must qualify for these based on family need on the FAFSA
• Federal Grants– Pell Grant– SEOG Grant
• State Grants – Michigan Competitive Scholarship (Up to $636)
• Must have a qualifying score on the ACT (or SAT)• Must qualify based on need (and file before March 1st)• Must be attending Michigan public college
– Michigan Tuition Grant (up to $1626)• Must qualify based on need (and file before March 1st)• Must be attending Michigan private college
Work Study/ Employment
• Work Study– Federal government paying your paycheck instead of department– Must be eligible based on FAFSA– Is factored in your financial aid package– Must find and work the hours to receive funds– Money in paycheck like any other job (at most schools)
• Employment– Regular job on campus, paid by department – Job off campus – Doesn’t require need on FAFSA– Isn’t factored onto financial aid package
Loans
• Federal Loans (MUST FILE FAFSA TO RECEIVE)– Subsidized Loans (4.29%)• Need based, does not accrue interest while in school
– Unsubsidized Loans (4.29%)• Not need based, interest accrues from time taken out
– Perkins Loans (5%)• Small loan program offered to needy students by some
colleges– Parent PLUS loans (6.84%)• Credit based loans in a parent’s name
Loan Activation
• To receive federal student loans must complete– Master Promissory Note– Loan Entrance Counseling
• Both are at www.studentloans.gov
• Parent Plus Loan– Parent applies at www.studentloans.gov– If approved then completes Master Promissory Note at
www.studentloans.gov • Do not need to begin payment as long as half time
enrolled
Loans Limits
Dependent Loan Limits• Freshman $5,500 • Sophomore $6,500• Junior $7,500• Senior $7,500 Independent students or parent denied plus loan- Additional $4,000 as Freshman/Sophomore Additional $5,000 for Junior/Seniors
Loan Limits by Degree
Undergraduate- Dependent $31,000Undergraduate- Independent $57,500
Sample Dependent Student:Year 1: $5,500 (below 26 credits achieved)Year 2: $6,500 (below 56 credits achieved)Year 3: $7,500 (56 and higher credits achieved)Year 4: $7,500 (56 and higher credits achieved)Year 5: $4,000 Total loans borrowed: $31,000
Subsidized vs. Unsubsidized
Does interest accrue while in school?
Subsidized:No
Unsubsidized:Yes and it compounds!
Payments are not required while
in school.
Freshman Student School 1 School 2
Cost of Attendance 1 year $12,350 $23,200
Expected Family Contribution Factor
$9124 $9124
Gross Financial Need $3226 $14076
Scholarships $3000 $2500
Student will receive:
Subsidized loan $226 $3500 (max)
Unsubsidized loan $5274 $2000
Suggested Parent PLUS loan or private loan
$3850 $15200
Additional Loans
• Private Loans• USE SPARINGLY!!• Can come from banks, credit unions or companies• Often variable interest rates• Generally based on credit score• Generally not as generous repayment plans or
forbearance options• www.finaid.org – list of private lenders and terms
FAFSA Website- www.fafsa.gov
ANY OTHER SITE IS NOT THE OFFICAL SITE, ONLY USE FAFSA.GOV
FSA ID- www.fsaid.gov
• www.fsaid.gov • Legal “signature” for FAFSA• Both student and one parent must have own FSA ID• Keep somewhere save, will need for years
REPLACED THE PIN for all federal
transactions
FSA ID
• Used to sign in to all federal sites – FAFSA – Studentloans.gov– Nslds.gov
• When creating, can put in PIN to connect it to FSA ID if already have one
• Parent and student must have DIFFERENT email addresses• Can retrieve forgotten user names and passwords through email or
answering challenge questions – Important date cannot be your birthdate
• Do this EARLY- take 1-3 days to be authenticated
Dependent or Independent
• Most students under age of 24 are DEPENDENT• If student is dependent, parent information is
required • Not necessarily related to who claims them on
their taxes• Could still be dependent even if– Your parent is not able or willing to help pay for college– You live on your own and pay your own bills– Contact your financial aid officer with questions
Who is My Parent(s)
• If biological/adoptive parents are married or living in same household, report information for both of them
• If parents are divorced, report the parent with whom you lived with the most over the last 12 months– If parent is remarried, you must include that parent’s
spouse/your step-parent and their income• Grandparents, foster parents, legal guardians are
NOT your parent unless they have legally adopted you
Household Size
• Include everyone who is in your (your parents) household who receive more then 50% of their support from your parent(s)
• Example– You live with your mother the most. She is remarried and she
and her spouse support YOU, your brother, your step-sister, and your step-brother who is in college. Your grandmother also lives with you and your parents support her more that 50%
– Household size= 7– The FAFSA provides a household size worksheet when filing to
help determine this number accurately
Will be available starting February 7th
Assets
• The FAFSA will determine whether or not you are required to provide asset information– Include value of cash, checking and saving accounts– Include overall net value of: CDs, money market, trust funds,
bonds, rental property, second homes, cottages, and refund value of all 529 plans owned by FAFSA parent
– Include business net values IF you have 100 or more employees– Include business farm net values UNLESS you reside on the farm– Do NOT Include the net value of the home your live in– Do NOT Include the value of retirement or pension account – Do NOT Include the value of undisbursed life insurance policies
Award Letters
• Schools will receive FAFSA information and use that to create financial aid packages (often around April)
• These will be sent to students, generally by mail or email
• Detail what the school can offer in aid• Also explains steps necessary to receive aid• Every schools award letter looks a little different
Special Circumstances
• Family financial circumstances can change, FAFSA is based off last year’s taxes
• Can request an appeal based on your situation from your school of choice’s financial aid office– Loss of Employment– Divorce– New excess expenses (such as medical costs not covered by
insurance)• Every school has own form and requirements• You will need to provide tax information and
documentation of the situation
Changes for 2017-18
• FAFSA will be available for 2017-18 in October 2016, instead of January 2017
• Will ask for prior- prior year data (2015 taxes for 2017-18 school year)
• No need to estimate, taxes should be done the previous April
• More ability to use IRS Data Retrieval and get financial aid packages earlier
• More time for family situations to change- can use Special Circumstance Appeals
Checklist• File FAFSA
– As soon as possible after Jan 1st, before March 1st for state aid • Update with current tax information
– Can use IRS data retrieval about 3 weeks after filed online • Receive Award letters and compare
– Compare school costs by what you can afford to contribute and what is offered by that school
• Turn in any required documentation– Schools will sometimes need to confirm tax information and other documentation,
turn this into the school you choose AS SOON AS POSSIBLE • Create a plan to pay for the school of choice
– What aid will be used, what personal funds will be used, how will all costs be covered
– Financial aid offices can assist you with any questions– Activate any loans that will be used (www.studentloans.gov)
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